Where do I begin?
Of course, you’re proud of your child’s college aspirations. But you might also be feeling overwhelmed. Isn’t everybody? It’s time to figure out how to cover the actual costs.
Where do I begin?
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Here's what other parents are asking
Savings calculator
Don’t let the need to be perfect stop progress. Even if you can only save $50 a month right now, you’ll still be ahead of the game.
If I save a month
Estimated savings when my child is 18 years old:
$0*
That's about 0% what you'll need for four years of in-state tuition fees.
* Assumes a hypothetical annual growth rate of 6%. For illustrative purposes. Not intended to portray an actual investment.
Ready to create a detailed plan?
Go to the college calculatorGive it a boost!
Yearly bonus? Tax refund? Put part — or all — of it into your 529 education savings plan.
Ask for gifts toward your child’s 529 savings plan on birthdays and holidays.
Have your child join in the effort.
Lemonade stands and part-time jobs can help grow the funds, too.
It’s better to start somewhere and start now. Small savings can make a big difference over time.
CollegeAmerica 529 savings plan basics
Saving for education is like planning a big trip — getting to your destination takes a good plan. A 529 savings plan is a popular way to save for college.
A CollegeAmerica 529 savings plan makes it easy.
Flexible
Use a 529 savings plan for more than college tuition, including housing, required books and computer equipment.
Save on taxes
The earnings on your 529 savings plan investments are exempt from federal taxes, and in many cases, there is a state tax benefit as well. Tax-advantaged treatment applies to savings used for qualified education expenses. State tax treatment varies.
Transferable
A 529 savings plan can be transferred to cover the eligible educational expenses for a family member of the original beneficiary.
Have more questions?
Wondering how to save for your child’s education? Get answers about opening an account, making contributions and withdrawals, updating your beneficiaries and more.
What educational institutions are eligible?
- Most U.S. community colleges
- Public and private four-year colleges, universities and vocational schools in the U.S.
- Some institutions outside the U.S.
Visit the Department of Education's federal school code search page for a quick way to check if a particular institution qualifies.
What if 529 savings plan assets aren’t used for qualified expenses?
Try to avoid withdrawing money for nonqualified expenses. If you use your 529 savings plan assets for nonqualified expenses, you could owe federal income tax on the withdrawal, plus a 10% penalty on the earnings. You may owe state tax as well. States take different approaches to the income tax treatment of withdrawals, so state tax may vary.
Can the beneficiary be a part-time student?
Yes! However, in order for room and board expenses to be covered, the student has to be enrolled on at least a half-time basis.
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choose
CollegeAmerica 529 savings plan
You trust your doctor with your health and your mechanic with your car. You shouldn’t settle for anything less when you’re deciding where to invest your money.
Trusted by more than 1 million families nationwide, CollegeAmerica is the country’s largest 529 savings plan,* with more than $66 billion invested.†
We're helping more than 2.4 million future students pursue their dreams.‡
- Any adult who's a U.S. citizen or legal resident can open a CollegeAmerica 529 savings plan, regardless of income.
- The earnings in a 529 savings plan are exempt from federal taxes if withdrawals are used for qualified expenses. And some states offer tax benefits as well.
- CollegeAmerica fees are among the lowest in the industry.**
- If withdrawals are used for purposes other than qualified education expenses, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax. States take different approaches to the income tax treatment of withdrawals. For example, withdrawals for K-12 expenses may not be exempt from state tax in certain states. State tax treatment varies.
Open a 529 savings plan
Work with a financial professional to open a CollegeAmerica 529 savings plan. He or she will help you to understand your choices and choose the best investment option for your family. Plus, working with a professional may give you some extra time to spend with your favorite people — your kids. If you don't have a financial professional, you can use our tool to search.